Data and code for: "Coordination and Organization Design: Theory and Micro-evidence"

We explore the relationship between the volatility of a firm’s local environmentand its organizational structure. Using micro-level data on managers working fora large retailer, we empirically test and provide support for our theory that a morevolatile local environment results in more decentralization only when the need forcoordination among sub-units is low. In contrast, more local volatility is associatedwith more centralization when coordination needs are high. Our evidence supportsthe argument that centralized organizations are better at adapting to local shockswhen coordination is important.